The Michigan Department of Health and Human Services can continue with its request for proposals to restructure the pre-paid inpatient health plans that operate as the managed care organizations for Medicaid mental health while a court case challenging the RFP proceeds, a judge has ruled.
Michigan Court of Claims Judge Christopher Yates denied a request for a preliminary injunction from the plaintiffs in Region 10 PIHP v. State of Michigan (COC Case No. 25-000143). The order was dated Tuesday and followed an earlier ruling dismissing most of the plaintiffs' case in favor of DHHS.
Yates dismissed the request for a preliminary injunction mainly on technical grounds, holding that declaratory relief is usually sufficient to induce the executive branch to conform with the law.
However, he signaled a potential ruling against DHHS on the remaining component of the case, whether the way DHHS structured the RFP violates the Mental Health Code.
"Although the court has not yet granted plaintiffs any declaratory relief, the possibility of such an outcome is significant, and the court will act expeditiously to address what remains of the complaint seeking a declaratory judgment," he wrote.
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